What you need to know about drone insurance

Those working in financial services or tech are probably all too familiar with the day-to-day cyber risks present in their industries. The risk of a digital security breach typically means cyber liability cover or some other form of business insurance. But there’s now another, lesser known type of cyber insurance available that covers a new sub niche. Drones.

So what do you need to know?

For starters, let’s go a little deeper into who should take out a drone insurance policy in the first place. While you can use drones recreationally (and people certainly do), they’re currently being trialled by a vast range of service workers across various Australian occupations. Even lifeguards are now trialling drones as a method of shark monitoring and spotting troubled swimmers that have been swept out to sea.

Following that, insurance companies have been reported using drones as a method of speeding up the claims process. Having aerial visibility allows for full access into a bushfire zone or damaged property without putting a person at risk. In the US, drones have been trialled in a similar fashion to assess flood damage underwater.

So you can see that there are a lot of good reasons for commercial drone use. However, it’s still a fairly unregulated area. Because it’s such a new market, you are not legally required to have insurance for your drone, but this doesn’t mean it’s not worth looking into.

It makes a lot of sense to insure expensive equipment that you operate for work. If your drone is lost, damaged or causes damage to others, a comprehensive policy can cover any unforeseen costs. The types of drone cover available are:

  • Public liability. This provides protection in the event that your drone causes third-party damage.
  • Vehicle & equipment. This typically covers the cost of your drone and operating equipment.

However, as with all types of insurance, the price of your policy can vary significantly depending on a range of contributing factors. These can include the number of flying hours you have logged, the value of your equipment, whether a maintenance log is kept and even whether your drone automatically records its flight log and trip data. This is required evidence if you end up making a claim.

There are only five brands that provide drone insurance cover directly in Australia, and because of this, it’s worth seeking advice from a broker. A broker has access to more information than you’re likely to find online and can really give you an overall view of the market and what sort of cover you can expect.

With such an exciting and new market, it’s likely that more industries will begin to use drones in the near future. It’s an efficient and exciting method of gathering information. Just make sure you’re protected.


Tags cyber attacksdronescyber insuranceCyber risks

Show Comments